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Hedonic coalition formation games: A new stability notion

  • Karakaya, Mehmet
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    This paper studies hedonic coalition formation games where each player's preferences rely only upon the members of her coalition. A new stability notion under free exit-free entry membership rights, referred to as strong Nash stability, is introduced which is stronger than both core and Nash stabilities studied earlier in the literature. Strong Nash stability has an analogue in non-cooperative games and it is the strongest stability notion appropriate to the context of hedonic coalition formation games. The weak top-choice property is introduced and shown to be sufficient for the existence of a strongly Nash stable partition. It is also shown that descending separable preferences guarantee the existence of a strongly Nash stable partition. Strong Nash stability under different membership rights is also studied.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165489611000187
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    Article provided by Elsevier in its journal Mathematical Social Sciences.

    Volume (Year): 61 (2011)
    Issue (Month): 3 (May)
    Pages: 157-165

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    Handle: RePEc:eee:matsoc:v:61:y:2011:i:3:p:157-165
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505565

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    1. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    2. repec:ner:tilbur:urn:nbn:nl:ui:12-194178 is not listed on IDEAS
    3. José Alcalde & Pablo Revilla, 2003. "Researching with Whom? Stability and Manipulation," Economic Working Papers at Centro de Estudios Andaluces E2003/35, Centro de Estudios Andaluces.
    4. Ballester, Coralio, 2004. "NP-completeness in hedonic games," Games and Economic Behavior, Elsevier, vol. 49(1), pages 1-30, October.
    5. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer, vol. 18(1), pages 135-153.
    6. Conley, John P. & Konishi, Hideo, 2002. "Migration-proof Tiebout equilibrium: existence and asymptotic efficiency," Journal of Public Economics, Elsevier, vol. 86(2), pages 243-262, November.
    7. Dimitrov, D.A. & Borm, P.E.M. & Hendrickx, R.L.P. & Sung, S.C., 2006. "Simple priorities and core stability in hedonic games," Other publications TiSEM 7c737a30-ac86-46ed-b210-e, Tilburg University, School of Economics and Management.
    8. Iehle, Vincent, 2007. "The core-partition of a hedonic game," Mathematical Social Sciences, Elsevier, vol. 54(2), pages 176-185, September.
    9. Shao Sung & Dinko Dimitrov, 2007. "On Myopic Stability Concepts for Hedonic Games," Theory and Decision, Springer, vol. 62(1), pages 31-45, February.
    10. Burani, Nadia & Zwicker, William S., 2003. "Coalition formation games with separable preferences," Mathematical Social Sciences, Elsevier, vol. 45(1), pages 27-52, February.
    11. José Alcalde & Antonio Romero Medina, 2005. "Coaliton Formation And Stability," Working Papers. Serie AD 2005-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Papai, Szilvia, 2004. "Unique stability in simple coalition formation games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 337-354, August.
    13. Dreze, J.H. & Greenberg, J., . "Hedonic coalitions: optimality and stability," CORE Discussion Papers RP -403, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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